7th Pay Commission: Auto makers expect spurt in sales

Top carmakers, including Maruti Suzuki India, Hyundai and Honda, are expecting a spike in their sales following the implementation of 7th Pay Commission recommendations.

Car market leader Maruti Suzuki India (MSI) is eyeing an over 25% growth in sales to government employees and pensioners at 2.5 lakh units this year, riding on the hike in their salaries.

“Central and state government are a high potential segment for us, contributing about 17% to the total volume. With increase in disposable income in the hands of 50 lakh central government employees and 58 lakh pensioners, we expect an impetus to car sales in this segment,” an MSI spokesperson said.

Last year, MSI sold over two lakh vehicles to the central and state government employees.
“This year with the implementation of 7th Pay Commission, we are expecting to sell over 2.5 lakh plus units in this segment this year,” the spokesperson added.

Honda Cars India Senior Vice-President (Marketing and Sales) Jnaneswar Sen said: “It is positive for the auto industry. Arrears and increments will lead to more cash in hand for consumers which will lead to more discretionary spending. At least in the short-term we are looking to increase in sales of automobiles.”

Hyundai Motor India, General Manager, Marketing, Puneet Anand said the decision will go a long way in fulfilling the aspiration of the one crore central government employees and pensioners.